ENVALITH
株式会社ハンズマン logo

HANDSMAN CO., LTD.

7636・Standard Market・Retail Trade

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株式会社ハンズマン logo
HANDSMAN CO., LTD.7636

Business

Hands Man Co., Ltd. was founded in 1964 and is headquartered in Miyakonojo City, Miyazaki Prefecture, operating as a DIY-focused home center chain. The company operates three business segments—DIY Products (55.2% of sales), Household Goods (31.3%), and Car & Leisure Products (13.5%)—with 11 stores across Kyushu prefectures (Miyazaki, Kagoshima, Kumamoto, Oita, and Fukuoka). In October 2023, the company made its first foray into Honshu with the opening of the Matsubara store in Matsubara City, Osaka Prefecture, bringing the total store count to 12. The company's primary customers are DIY enthusiasts and general households, and its management policy is to "fulfill all customer needs related to housing and daily living." The company is listed on the Tokyo Stock Exchange Standard Market.

Business Model

The business focuses on retail sales of DIY Products, Household Goods, Car & Leisure Products, and related items, recording net sales of ¥34,896 million. A key revenue characteristic is specialized consulting-based sales conducted by staff holding DIY advisor qualifications. Even amid rising procurement costs, the company maintained selling prices through the development of substitute products and the cultivation of new suppliers, achieving average customer spending of 102.3% year on year. Rental income from company-owned real estate (investment real estate rental income of ¥124 million) also serves as a supplementary revenue source.

Company Strengths

The capital adequacy ratio at the end of FY2025 (ended June 2025) stood at 70.5%, substantially exceeding the target of 50% or more. Against total net assets of ¥18,102 million, interest-bearing debt has been significantly reduced (net decrease of ¥899 million in long- and short-term borrowings during the fiscal year), establishing a framework capable of maintaining financial soundness even while executing large-scale investments such as new store openings.

During the fiscal year under review, the company significantly increased the number of employees holding DIY Advisor qualifications, enhancing consulting-based sales capability in store customer service. Proposal-based sales grounded in specialized knowledge serve as a differentiating factor versus competitors, contributing to the maintenance of per-customer spending at 101.7% for existing stores and 102.3% across all stores.

Sales performance in FY2025 (ended June 2025) showed increases across all three categories: DIY Products at ¥19,281 million (101.6% year-on-year), Household Goods at ¥10,917 million (103.9% year-on-year), and Car & Leisure Products at ¥4,697 million (101.1% year-on-year). The growth in Household Goods was particularly notable, demonstrating the stability of the product portfolio.

ENVALITH's Perspective

Gross margin for the cumulative nine-month period stood at 31.1%, down 0.5 points year on year. The main cause is that the company has restrained price increases despite elevated raw material prices and higher purchasing costs stemming from yen depreciation. As long as external factors—yen depreciation and elevated resource prices—persist, this structural downward pressure on margins will remain. Achieving the full-year operating profit forecast of ¥1,080 million (down 12.6% year on year) will require a recovery in the fourth quarter, and progress on the price pass-through strategy will be the key focus.

SG&A expenses were held to 99.3% of the prior-year level, aided by a decrease in depreciation expense (from ¥675 million in the prior-year period to ¥628 million in the current period) and lower utility costs. However, this was insufficient to offset the impact of the decline in gross margin, and operating profit came to only 89.8% of the prior-year level. Room for further SG&A cost reductions is narrowing, making an improvement in gross margin essential for future profit recovery. The company's pricing policy in the face of rising purchase costs will be put to the test.

Against the full-year sales forecast of ¥35,050 million, the progress rate for the cumulative nine-month period was 72.8% (versus 73.1% in the same period of the prior year), broadly in line with the usual pace. On the other hand, the progress rate against the full-year operating profit forecast of ¥1,080 million stood at only 67.3%, meaning operating profit of ¥353 million will be needed in the fourth quarter (April–June). This is an achievable level when compared with the fourth-quarter results of the prior year (¥1,236 million − ¥810 million = ¥426 million), but downside risk remains if elevated purchasing costs continue.

Growth Strategy

Aiming for sustainable growth through expansion of store openings in major metropolitan areas and strengthening of DIY expertise

To improve consulting-based sales capability in store customer service, the number of staff holding the DIY Advisor certification has been substantially increased. Through specialized knowledge-based proposal-type sales, the company aims to maintain and improve average customer spending and enhance customer satisfaction. This initiative was ongoing during the cumulative nine months ended third quarter.

To respond to discontinuations and price increases by suppliers, the company continues to promote the discovery of substitute products and the development of new suppliers. While curbing opportunity losses due to stockouts in some product categories, the company aims to maintain and expand its product lineup. This initiative continued during the cumulative nine months ended third quarter.

The company has set forth, as a medium- to long-term growth strategy, the expansion of store openings from its Kyushu base into the Honshu area, including Osaka. Currently, all 12 stores are existing stores (in operation for 13 months or longer), and expanding sales scale through new store openings is key to the next phase of growth. Store opening regulations (the Large-Scale Retail Store Location Act and the City Planning Act) constitute a risk factor.

Last updated: July 17, 2026